Energy efficiency is becoming an increasingly important consideration for homeowners and homebuyers. With rising concerns about energy costs, more people are looking for ways to reduce their monthly expenses and make their homes more energy efficient.
Last week, we discussed the differences between owned and leased solar panels and how solar can affect a home’s value. That conversation led to another interesting topic: What exactly makes a home net zero?
Many people assume that having solar panels automatically makes a home net zero, but there’s much more to it than that.
What Is a Net-Zero Home?
A net-zero energy home is designed to produce as much renewable energy as it consumes over the course of a year.
That doesn’t mean the home produces exactly the amount of energy it uses every day or every month. During the summer, solar panels may generate more electricity than the home needs, while during the shorter winter days, the home may consume more energy than it produces.
The goal is to balance energy production and consumption over the course of an entire year.
And here’s the important distinction: A home with solar panels isn’t necessarily a net-zero home.
Solar is only one part of the equation.
What Goes Into Creating a Net-Zero Home?
Achieving net zero starts with reducing the amount of energy a home needs. The more efficient the home, the less renewable energy is required to offset its consumption.
Several important components work together:
❖ Insulation and Air Sealing: Proper insulation in the walls, attic, and basement, along with sealing air leaks around windows, doors, and other openings, helps prevent energy loss.
❖ Efficient Heating and Cooling: High-efficiency systems, including geothermal and air-source heat pumps, can significantly reduce the energy needed to heat and cool a home.
❖ Solar Energy: An appropriately sized solar system can generate renewable electricity to offset the home’s annual energy consumption.
❖ Energy-Efficient Water Heating and Appliances: Heat pump water heaters, energy-efficient appliances, and LED lighting all help reduce electricity usage.
❖ Ventilation: Efficient ventilation systems provide fresh air while helping minimize unnecessary energy loss.
❖ Energy Monitoring: Tracking annual energy production and consumption helps determine whether the home is actually achieving net zero.
It’s the combination of these features, rather than any one improvement, that makes the difference.
Can an Older Home Become Net Zero?
Absolutely! And this is particularly relevant here in Franklin County, where we have so many wonderful older homes.
You don’t necessarily need to build a brand-new house to achieve net-zero energy performance.
An existing home can be improved over time, starting with an assessment of its current energy efficiency.
Steps to Create a Net-Zero Home
Start with an energy audit. Mass Save offers no-cost Home Energy Assessments for eligible Massachusetts residents, making that an excellent place to begin.
From there, improvements may include:
❖ Adding insulation and improving air sealing.
❖ Upgrading older heating and cooling equipment to more efficient systems.
❖ Installing an energy-efficient water heater.
❖ Replacing inefficient lighting and appliances.
❖ Considering solar panels to offset remaining electricity consumption.
The key is to reduce energy consumption first, then determine how much renewable energy is needed.
Not every older home will be able to achieve net zero easily or economically, but even homes that don’t reach that goal can benefit substantially from energy-efficiency improvements.
An Example of a Nearly Net-Zero Home in Turners Falls
I recently listed an impressive Tudor style home on the hill in Turners Falls that demonstrates how an older home can achieve remarkable energy efficiency while preserving its original character.
This property features an 11-kilowatt owned solar system, geothermal heating and cooling, and a heat pump water heater.
What’s especially impressive is its energy performance.
In 2025, the solar system generated enough electricity to offset 96% of the property’s annual electric consumption, including heating, cooling, hot water, and charging a fully electric vehicle!
That’s an exceptional example of what can be accomplished by combining renewable energy with efficient mechanical systems.
While the home doesn’t quite reach the 100% annual electricity offset needed for net-zero electricity performance, it comes remarkably close. In fact, without the electricity used to charge the electric vehicle, it’s possible the home’s solar production could have offset 100% or more of its household electricity consumption.
And it demonstrates that energy efficiency doesn’t have to come at the expense of architectural character or charm.
Does Net Zero Mean You Have No Electric Bill?
Not necessarily.
Even if a home’s solar system produces as much electricity as it consumes annually, homeowners may still have utility charges, service fees, or other expenses.
In Massachusetts, eligible solar systems may participate in net metering, allowing excess electricity sent to the grid to generate credits that can help offset future electricity costs.
The actual savings depend on the home’s energy consumption, solar production, utility arrangements, and applicable net-metering rules.
It’s important to review the property’s actual energy bills and production history rather than assuming a net-zero home has no utility expenses.
How Does Net Zero Affect a Home’s Value?
This is where energy efficiency becomes particularly interesting from a real estate perspective.
Homes with lower operating costs can be more attractive to buyers, especially those concerned about future energy expenses.
But being net zero doesn’t automatically mean a home is worth a specific amount more.
The value comes from the combination of improvements and how buyers respond to those features in the marketplace.
For example:
❖ Owned solar panels may contribute value while reducing future electricity expenses.
❖ Geothermal and other high-efficiency heating and cooling systems can be attractive features.
❖ Improved insulation and air sealing can increase comfort and reduce energy consumption.
❖ Documented energy savings can help buyers understand the financial benefits of the property.
Appraisers may consider these improvements when supported by comparable sales and market evidence.
However, as with any capital improvement, the cost of installing these systems doesn’t necessarily translate into an equal increase in the property’s market value.
The greatest advantage may be the combination of lower operating costs, improved comfort, increased buyer appeal, and potentially increased property value.
The Bottom Line
A net-zero home is about much more than solar panels. It’s about creating a home that uses energy efficiently and produces enough renewable energy to offset its annual consumption.
Whether you’re building a new home, renovating an older property, or simply looking for ways to reduce energy costs, the same principle applies: Start by making the home as energy efficient as possible.
And when it comes time to sell, those improvements may become valuable features that help your property stand out in the marketplace.
If you’re considering buying or selling an energy-efficient home in Franklin County or the surrounding area, I’d be happy to discuss the benefits with you.
Corinne Fitzgerald
FITZGERALD Real Estate
Serving Franklin County and Beyond
Call or Text: 413-320-9509
[email protected]
Tune in to listen to Corinne’s Real Estate segment every Tuesday morning with Nick on WHAI right after the 7:30 news, and with Jess on Bear Country right before 9 a.m.